The Manheim index is a simple summary of all sales at wholesale. The trend of Used Car Wholesale prices and the S&P500 are closely linked. Using the S&P500 as a guide, changes in long term trends can be identified, and change in guidance can be issued.
As an example, should the change in trend be negative, financial hedges can be put in place and defensive management techniques can be given to the dealer principal for use with the management team.
Because the S&P500 is the model and the "trend change trigger" can be tuned, we can look backward at trigger points and easily create "what if" scenarios to optimize the hedge performance.
Even though the other charts are > 2 years old, the correlation remains intact.
Sun Auto Group